AVI BioPharma Moving Corporate Headquarters to Greater Seattle Area

CORVALLIS, OR, Jul 30 (MARKET WIRE) --
AVI BioPharma, Inc. (NASDAQ: AVII), a developer of RNA-based drugs, today
announced the impending strategic move of its corporate headquarters and
much of its leadership team to the greater Seattle area. The company
plans to build upon and broaden its clinical development and drug
discovery skill base by drawing upon the region's scientific expertise.
The move will enable AVI to streamline its corporate operations and
upgrade its capability to add new drug candidates to its pipeline in
neuromuscular, immunological and viral diseases.

"AVI has reached a critical juncture in its evolution -- our pipeline of
new and novel RNA-based therapeutics is growing and already has sparked
significant interest and excitement from the scientific, pharmaceutical
and financial communities. As we continue to develop our lead candidates
towards potential regulatory approval, our ability to fully build out our
organization and develop AVI's commercial capabilities will become a high
priority," said Leslie Hudson, Ph.D., President and Chief Executive
Officer of AVI BioPharma. "This move to the biotechnology hub in Seattle
provides us with important competitive advantages in accessing experienced
executives, scientists and regional collaborators. We look forward to
being active and engaged corporate citizens in the region."

"The Puget Sound region is proud to be the home of approximately 200 life
sciences organizations, as well as the host of world class universities,
research institutes and prominent non-profit research organizations that
together play an important and leading role in the global health
community," said Chris Rivera, President of the Washington Biotechnology
and Biomedical Association. "We are pleased and excited to welcome AVI --
a leading innovator in RNA therapeutics -- to the Washington biotechnology
community. The company's move to our region is yet another example of the
area's ability to attract top caliber talent and connect growing companies
with the resources they need to thrive."

AVI has signed a lease agreement for a 19,000 square foot facility in
Bothell, Washington that includes office and laboratory space. AVI expects
to have operations underway in this new facility in August 2009, including
the company's R&D efforts around its ongoing dose finding trial of
AVI-4658 in patients with Duchenne muscular dystrophy (DMD). The company
will relocate most of its leadership team to Seattle, relocate and
recruit to its discovery teams in chemistry and biology, and also will
add to its current teams in drug and business development.

AVI's Corvallis, Oregon laboratories will remain fully operational and
will be dedicated to biodefense contracting and drug supply. AVI is
developing novel antisense drug candidates for the treatment of a range
of viruses, including H1N1 influenza, Ebola, Marburg and Junin viruses in
collaboration with the US Army Medical Research Institute of Infectious
Diseases (USAMRIID). This drug development effort is supported by several
contracts from the Department of Defense's Transformational Medical
Technologies Initiative (TMTI). Recently, AVI signed a contract with the
U.S. Defense Threat Reduction Agency (DTRA) for the development of one or
more nucleotide-based candidate drugs targeting the present pandemic of
H1N1 swine flu.

About AVI BioPharma

AVI BioPharma is focused on the discovery and development of RNA-based
drugs utilizing proprietary derivatives of its antisense chemistry
(morpholino-modified phosphorodiamidate oligomers or PMOs) that can be
applied to a wide range of diseases and genetic disorders through several
distinct mechanisms of action. Unlike other RNA therapeutic approaches,
AVI's antisense technology has been used to directly target both messenger
RNA (mRNA) and its precursor (pre-mRNA), allowing for both up- and
down-regulation of targeted genes and proteins. AVI's RNA-based drug
programs are being evaluated for the treatment of Duchenne muscular
dystrophy as well as for the treatment of cardiovascular restenosis
through our partner Global Therapeutics, a Cook Group Company. AVI's
antiviral programs have demonstrated promising outcomes in Ebola Zaire
and Marburg Musoke virus infections and may prove applicable to other
viral targets such as HCV or Dengue viruses. For more information, visit
www.avibio.com.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act
of 1995: The statements that are not historical facts contained in this
release are forward-looking statements that involve risks and
uncertainties, including, but not limited to, the results of research and
development efforts, the results of preclinical and clinical testing, the
effect of regulation by the FDA and other agencies, the impact of
competitive products, product development, commercialization and
technological difficulties, and other risks detailed in the company's
Securities and Exchange Commission filings.

AVI Press and Investor Contact:
Julie Rathbun
investorrelations@avibio.com
(541) 224-2575

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